Senate Looks at Financial Risks from Climate Change

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Senate Looks at Financial Risks from Climate Change

<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Washington, D.C., October 31, 2007—This afternoon members of the Senate Banking Committee will hold a hearing on the financial risks and opportunities arising from future climate change. The Competitive Enterprise Institute urges members of the committee, while investigating this issue, to fully consider both the costs associated with any future global warming as well as the costs of the government policies being proposed to stop it.

“Humanity has always had to deal with a changing climate, adapting to natural variations in temperature and precipitation.” said Competitive Enterprise Institute Director of Energy & Global Warming Policy Myron Ebell. “The societies that have adapted most successfully have been wealthier, more advanced ones. Policies that would limit energy use and slow innovation would impose massive costs of their own – cost that would likely dwarf the financial impact of global warming itself.”

Some advocates of global warming legislation have gone beyond merely ignoring the costs of limiting on energy use, arguing that policies like greenhouse gas restrictions will actually be financially positive. Supporters cite the support of large corporations as proof that rationing fossil fuel use is an economically sound idea. What they usually do not acknowledge, however, is that the same companies are betting on future emissions rules being written in a way that advances their business interests while penalizing rival corporations and passing their costs on to U.S. consumers and taxpayers.